HB-4552, As Passed House, March 25, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 4552

     A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

by amending sections 11 and 88i (MCL 125.2011 and 125.2088i),

section 11 as amended by 1987 PA 278 and section 88i as added by

2005 PA 225.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 11. (1) Within 90 days after assistance for a project is

requested from the fund by the filing of a written application with

the board, the board shall approve or disapprove the request for

assistance. Upon written request by an applicant, the board may

reconsider its denial of an application for assistance under this

section or may waive the 90-day deadline for approving or

disapproving an application.

     (2) Beginning April 1, 2010, the board shall not approve a

request for assistance for a project from a business that has

failed to comply with the Michigan corporate responsibility act or

fails to disclose a civil or criminal offense as required by

section 3 of the Michigan corporate responsibility act.

     Sec. 88i. (1) The office of the chief compliance officer is

created within the fund. The office shall exercise its powers and

duties under this section independently of the fund.

     (2) The office shall assist the fund board with the creation,

implementation, monitoring, and enforcement of policies and

procedures to prevent illegal, unethical, or improper conduct on

the part of fund board members, commercialization board members and

employees, or agents of the fund board and commercialization board

in carrying out their duties under this chapter. The office also

shall assist the board of directors of the Michigan economic growth

authority created under the Michigan economic growth authority act,

1995 PA 24, MCL 207.801 to 207.810, with the creation,

implementation, monitoring, and enforcement of policies and

procedures to prevent illegal, unethical, or improper conduct on

the part of the board of directors of the Michigan economic growth

authority, agents of the board of directors, employees of the fund,

or applicants for tax credits under the Michigan economic growth

authority act, 1995 PA 24, MCL 207.801 to 207.810.

     (3) The principal executive officer of the office is the chief

compliance officer. The state administrative board shall be the

appointing authority of the chief compliance officer.

     (4) A person may not interfere with, prevent, or prohibit the

chief compliance officer from carrying out his or her duties as

established in this section and set by the state administrative

board or his or her duties under other applicable law. The chief

compliance officer is an employee for purposes of the

whistleblowers' protection act, 1980 PA 469, MCL 15.361 to 15.369.

     (5) All departments, state agencies, committees,

commissioners, or officers of this state, the MEDC, and any

political subdivision of this state, so far as is compatible with

their duties, shall give the chief compliance officer any necessary

assistance required by the chief compliance officer in the

performance of the duties of the chief compliance officer. All

departments, state agencies, committees, commissioners, or officers

of this state, the MEDC, and any political subdivision of this

state shall provide the chief compliance officer free access to any

book, record, or document in their custody, relating to the matters

within the scope of the chief compliance officer in the performance

of his or her duties.

     (6) The chief compliance officer shall do all of the

following:

     (a) Recommend policies and procedures, including, but not

limited to, a conflict of interest policy, an investment policy,

and an ethics policy to the fund board, and the commercialization

board, and the board of directors of the Michigan economic growth

authority that shall protect the state's assets consistent with the

requirements of this chapter and applicable state and federal law.

The chief compliance officer shall also assist in the design of the

policies and procedures that will prevent violations from

occurring, detect violations that have occurred, and correct such

violations promptly.

     (b) Assist employees and agents of the board, and the

commercialization board, and the board of directors of the Michigan

economic growth authority to ensure that they are in compliance

with internal policies and procedures and with applicable state and

federal law.

     (c) Provide guidance to the board, the commercialization

board, the board of directors of the Michigan economic growth

authority, and employees of the board, and the commercialization

board, and the Michigan economic growth authority on matters

related to compliance with internal policies and procedures and

with applicable state and federal law.

     (d) Make recommendations to the board, the commercialization

board, the board of directors of the Michigan economic growth

authority, and employees of the board, and the commercialization

board, and the Michigan economic growth authority regarding the

appropriate evaluation, investigation, and resolution of issues and

concerns regarding compliance with internal policies and procedures

and with applicable state and federal law.

     (e) Review and evaluate compliance with internal policies and

procedures and with applicable state and federal law.

     (f) Cooperate with the office of the auditor general as the

auditor general carries out his or her constitutional duties.

     (g) Report quarterly to the fund board and the state

administrative board regarding compliance with internal policies

and procedures and with applicable state and federal law.

     (h) Contact persons receiving awards, investments, grants, and

Hosue Bill No. 4552 (H-1) as amended March 25, 2010

loans under this chapter and tax credits authorized under the

Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to

207.810, to the extent necessary to carry out responsibilities

under this chapter and other applicable law.

     (i) Prepare a written annual report that evaluates compliance

with internal policies and procedures and with applicable state and

federal law, explains any compliance matters that arose during the

previous year, and suggests revisions to agency policies and

procedures. Copies of the report shall be provided to the governor,

the clerk of the house of representatives, the secretary of the

senate, the chairpersons of the senate and house of representatives

committees on commerce, and the chairpersons of the senate and

house of representatives committees on appropriations. The annual

report shall also be published on the fund's internet website.

     (j) Do all other things necessary to carry out the chief

compliance officer's responsibilities under this section and other

applicable law.

     (7) As used in this section, "office" means the office of the

chief compliance officer.

[(8) The physical offices of the chief compliance officer shall

 not reside in a building where any other fund employee office resides.]